Nigeria’s steel sector revival gains momentum as Tinubu administration unveils bold plans to resuscitate Ajaokuta and other moribund steel plants for industrial growth
Nigeria’s steel sector is back in the national spotlight as President Bola Tinubu’s administration rolls out an ambitious plan to revive moribund steel companies and reposition Nigeria for industrial excellence.
Also read: Ajaokuta Steel revival takes shape as Nigeria partners with Chinese industrial giants
Speaking at the inaugural National Steel Stakeholders’ Summit in Abuja, Vice President Kashim Shettima—representing the President—emphasised that the revival of the Nigeria’s steel sector is central to job creation, economic sovereignty, and sustainable development.
He announced the administration’s target: to produce 10 million tonnes of liquid steel annually by 2030, generating over 500,000 jobs.
More than two decades after Nigeria’s failed privatisation effort in the early 2000s, which saw thriving steel plants in Oshogbo, Katsina, Jos, and Delta become non-operational, the Nigeria’s steel sector is now being strategically revived.
This includes both government-owned and privatised assets.
“Ajaokuta Steel Company is not just an economic failure—it’s a symbol of our abandoned ambition,” Shettima said. “Revitalising it is now a national imperative.”
The federal government has started a technical and financial audit of the Ajaokuta plant to guide investor selection. Bureau of Public Procurement approvals have already been secured, with the audit now in progress.
Additional highlights include:
- MoU with Tyazhpromexport (TPE) of Russia, with possible pivot to Chinese partners due to the ongoing Russia-Ukraine war.
- Rehabilitation commitment from Premium Steel & Mines Ltd for Delta Steel Company within 18 months.
- Construction of five mini-LNG plants worth over $500 million in Ajaokuta.
- Discussions on a $465 million revival of the Aluminium Smelter Company of Nigeria.
- Plans for a new $400 million Stellar Steel plant in Ogun State.
The administration is also working closely with the National Assembly to enact new legislation including the Metallurgical Industry Bill, an updated National Steel Council Act, and the Metallurgical Training Institute Bill.
To support raw material supply, a national scrap aggregation policy will regulate recycling, curb vandalism, and ensure availability across six geopolitical zones.
Minister of Steel Development, Prince Audu Abubakar, stressed the ministry’s roadmap to produce 10 million metric tonnes of steel annually. He outlined several investor incentives:
- Up to 95% capital allowances
- Duty-free equipment importation
- Tax holidays
- Mandatory 30% local steel input for public projects
“Revitalising local steel production will slash our$4.5 billion annual steel import bill and position Nigeria as a manufacturing powerhouse,” he said.
Chairman of the Senate Committee on Steel Development, Senator Patrick Ndubueze, urged the unbundling of Ajaokuta’s 38 completed factories—over 20 of which can operate independently.
“This summit must be a turning point,” he said. “Let’s transform ideas into outcomes and make Nigeria a regional hub for industrial excellence.”
Dr. Dele Alake, Minister of Solid Minerals Development, shared progress on Nigeria’s mineral industrialisation. These include:
- $600 million lithium processing plant near Kaduna-Niger border
- $200 million refinery near Abuja
- Two more plants in Nasarawa by 2025
- 2,350 mining marshals deployed nationwide
Plans are also underway to begin military hardware production at Ajaokuta, in partnership with the Ministry of Defence.
The Nigeria’s steel sector is at a pivotal point. With strong government backing, legislative reforms, and massive investment commitments, the country is on track to reclaim its long-lost industrial crown jewel.
Also read: Ajaokuta Steel revival gains momentum as Nigeria holds strategic talks with Sino Steel
As Vice President Shettima affirmed, “This is a defining moment in our national journey. We are ready to build a self-reliant, industrialised Nigeria—and the steel sector is the foundation.”
Source: Read more at championnews.com.ng
